2016 Standing Offer Investigation and Determination

Changes to 2016 Standing Offer Price Determination (June 2016)

On 3 June 2016, the Regulator received a proposal from Aurora Energy to amend the 2016 Standing Offer Determination to correct an error in the Determination which effectively requires Aurora Energy to impose interest on overdue accounts on a different basis than currently occurs.

The proposed amendments corrected the error and, therefore, allow Aurora Energy to continue to impose interest on overdue accounts on the same basis as it does at present.

The Regulator sought comments on the proposed amendments to the Determination and released a Consultation Paper and a marked up copy of the Determination outlining the proposed changes to assist interested parties in making submissions.

Submissions closed at 5:00pm on Friday 24 June 2016. The Regulator received one submission from Aurora Energy Pty Ltd. Aurora's submission supported the proposed amendments.

On 29 June 2016, after considering the comments made in the submission, the Regulator published an amended Determination incorporating the proposed changes.

The amendments do not impact on the standing offer prices that the Regulator approved, on 16 June 2016, to apply from 1 July 2016.

Final Report and Final Determination

On 5 May 2016, the Regulator made its Final Determination and published its Final Report and Final Price Approval Guideline. Accompanying this release, the Regulator also published a media release.

On 5 May 2016, the Regulator also advised Aurora Energy that it had approved Aurora Energy's Standing Offer Price Strategy subject to Aurora Energy making a number of amendments to the strategy. The final Aurora Energy Standing Offer Price Strategy is available here.

A Statement of Reasons was also published on 5 May 2016, explaining the changes made to the Draft Report, Draft Determination, Draft Guideline and Draft Strategy arising from comments made in submissions from the consultation processes.

Draft Standing Offer Price Strategy

On 9 March 2016, the Regulator released Aurora Energy's Draft Standing Offer Price Strategy for public comment.

The Regulator invited public submissions on the Draft Price Strategy. To assist interested parties in making a submission, the Regulator prepared a Consultation Paper. Submissions closed on 1 April 2016 and four late submissions were accepted.

Submissions were received from:

All submissions were taken into account prior to the Regulator approving Aurora Energy's Standing Offer Price Strategy in April 2016.

Draft Report and Draft Determination

On 5 February 2016, the Regulator released its Draft ReportDraft Determination and Draft Price Approval Guideline. The Draft Report was accompanied by a media release.

The Regulator invited public submissions on the Draft Report, Draft Determination and Draft Price Approval Guideline. To assist interested parties in making a submission, the Regulator prepared a Consultation Paper. Submissions closed on 15 March 2016 and one late submission was accepted.

Submissions were received from:

Both submissions were taken into account prior to the Regulator preparing its Final Report and making its Final Determination.

Aurora Energy's preliminary submission to the Standing Offer Pricing Investigation

On 30 September 2015, Aurora Energy made its preliminary submission to the Standing Offer Pricing Investigation. Prior to receipt of the submission, Aurora Energy had written to the Regulator requesting that the submission be treated as confidential. In accordance with section 16(1) of the Electricity Supply Industry Act 1995 and its Policy on the Treatment of Confidential Submissions (Version 3, 1 July 2014), the Regulator agreed to keep the preliminary submission confidential due to commercial sensitivity considerations.

Notice of intention to conduct a pricing investigation

On 2 July 2015, the Regulator announced its intention to conduct a Price-regulated Retail Service (Standing Offer) pricing investigation.

On 29 April 2016, the Regulator advised stakeholders that its Final Investigation Report will be released, and its Final Determination will be made, on or before 6 May 2016. The completion date for the investigation was extended so that the Regulator could adequately address all of the issues raised in response to the Draft Report, Draft Determination, Draft Price Approval Guideline and Aurora Energy's Draft Standing Offer Price Strategy. The Regulator subsequently issued an amended notice.

The timeframes for the investigation were as follows:

Description of task
Date
Regulator commences investigation
1 July 2015
Aurora submits its preliminary submission
30 September 2015
Aurora submits details of the high level principles that will underpin its Standing Offer Price Strategy
30 September 2015
Regulator releases draft report and draft price determination for public consultation
5 February 2016
Regulator releases standing offer draft approval guideline for public consultation
5 February 2016
Aurora submits its draft Standing Offer Price Strategy
12 February 2016
Regulator considers submissions on draft report, draft price determination and standing offer guideline
From 15 March 2016
Regulator releases draft Standing Offer Price Strategy for public consultation
9 March 2016
Regulator considers submissions and releases final standing offer draft price approval guideline
1 April 2016
Regulator considers submissions and approves Aurora Energy's Standing Offer Price Strategy
May 2016
Regulator releases final report and price determination
5 May 2016
Aurora submits pricing proposal for 2016-17
30 May 2016
Regulator approves standing offer prices to apply from 1 July 2016
June 2016

 

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